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Fortune Management Inc.

euro adhoc: Fortune Management Inc.
Restructuring & Recapitalisations / Fortune Management Inc. signed a binding Restructuring Agreement with the majority of the Bond- and Loan-Note-Holders

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.
Contracts
22.07.2008
Zug/Switzerland, 22 July 2008 - FORTUNE Management Inc. (General 
Standard, ISIN USU026281027; SIN: A0BLYY) announces that it has 
signed a binding Restructuring Agreement with Bondholders and Loan 
Noteholders representing the majority of the Partial Bonds and Loan 
Notes which sets forth certain terms of an agreed restructuring of 
the Fortune Management Group ("FMI"). As already envisaged by the 
non-binding term sheet that had previously been entered into by the 
parties to the Restructuring Agreement (see Ad-hoc notice of FMI on 
17 June 2008) Bonds and Loan Notes with a face value of EUR 103 m 
will be exchanged by the Bondholders and Noteholders for a beneficial
interest in a restructuring trust under the governance of 
representatives of the Bondholders and Noteholders.
The Restructuring Agreement includes all the key elements of the 
restructuring plan contemplated by the term sheet of 17 June 2008. 
Upon implementation of the Restructuring Agreement the restructuring 
trust will hold certain assets for the sole benefit of former 
Bondholders and Noteholders. The trust together with the new 
management of GATE will hold all shares of the GATE Renewable Energy 
group GATE, which will turned around under the leadership of Alvarez 
& Marsal, a leading global turnaround management firm. The trust will
further hold 100% of FMI´s wealth management operation or any net 
sales proceeds from a sale of this division. In addition, FMI will 
issue to the trust a EUR 45 m bond, EUR 5 m issue value preferred 
shares and 40 m of common shares of FMI. The new debt will have a 
term of 10 years and will accrue interest until cash flow allows. All
proceeds flowing into the trust will be paid to the Bondholders and 
the Noteholders in a pre-agreed ratio. Any current Bondholder or 
Noteholder that still holds warrants issued in conjunction with the 
Bonds or the Notes will receive the underlying number of shares of 
common stock. Upon implementation of the Restructuring Agreement 
representatives of the Bondholders and Noteholders will join the 
Board of Directors of the company and form a new Executive Committee.
All other Bondholders will be offered the right to accede to the 
Restructuring Agreement within a short period of time and become 
beneficiaries of the trust. FMI will shortly notify of a Bondholders´
Meeting, in which it will be proposed to resolve with the support of 
the vast majority of the Bonds that any Bonds outstanding will lose 
certain rights, including the right to claim repayment of the Bond 
for a period of three years following the resolution without any 
interest owed for such period.
The implementation of the Restructuring Agreement is subject to 
certain closing conditions, which FMI is in the process of preparing 
and which FMI expects to be met. However, there is no certainty these
conditions can be met.
After the completion of the restructuring FMI will retain its Private
Equity Management division whose main asset being currently the 
interest held in Fortune Super Equity Management L.L.C. in the United
Arab Emirates.
End of Ad Hoc
Profile of FORTUNE Management Inc.: FORTUNE Management Inc., 
Zug/Switzerland, is a publicly listed private equity firm. The 
company´s shares (ISIN: USU 026281027) are listed in the General 
Standard segment of Frankfurt Stock Exchange (symbol: FMI1) and on 
the DIFX in Dubai
end of announcement                               euro adhoc

Contact:

FORTUNE Management Inc.
Phone +49 69 9441 8069
IR@fortune-management.com
Bahnhofstrasse 10
P.O. Box 324
CH-6301 Zug

Branche: Financial & Business Services
ISIN: USU026281027
WKN: A0BLYY
Börsen: Börse Berlin / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Frankfurt / regulated dealing/general standard

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